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Cinema chain chief rejects streaming as threat to big screen
Tim Richards, founder and CEO of Vue International, has dismissed streaming platforms as direct competitors to cinemas, arguing that the pandemic-era shift to home entertainment failed to deliver sustainable profits for studios. In an interview with the BBC, Richards emphasized that cinemas and streaming services operate within a shared ecosystem, stating, "We all need each other."
Pandemic losses and industry resilience
Vue International reported a pre-tax loss of £91.8 million for the 12 months ending November 2024, attributing the decline primarily to reduced ticket sales. The company faced unprecedented challenges over the past five years: record revenues in 2019 were followed by nearly two years of pandemic closures, then prolonged disruptions from Hollywood's actors' and writers' strikes, which halted production for months.
Richards described his focus during the crisis as singular: "Save the company and save all of our 10,000 employees." While streaming giants like Netflix saw subscriber numbers surge during lockdowns, he maintained that home viewing never replaced the cinema experience. "Our biggest, most frequent customers are Netflix subscribers or Disney Plus subscribers," he noted, adding that film enthusiasts embrace multiple formats.
Studio strategies backfire
During the pandemic, major studios attempted to bypass theatrical releases, opting for direct-to-streaming premieres or abbreviated cinema runs. Richards cited Marvel's Black Widow and recent titles like K-Pop Demon Hunters as examples of films that underperformed in theaters due to shortened windows. "The studios lost hundreds of millions of dollars," he claimed, suggesting the experiment proved costly. "They learned we are in one small ecosystem."
"During the pandemic, there was an increase with subscription services because people had no choice. But that has not continued."
Tim Richards, CEO of Vue International
Recovery and summer optimism
Vue has rebounded to pre-pandemic trading levels this year, with Richards projecting next summer to be the chain's most successful ever. He attributed the turnaround to pent-up demand rather than shifting consumer habits. "We've never had a demand issue," he asserted, framing the Hollywood strikes as a temporary supply constraint rather than a structural decline in audience interest.
The CEO also highlighted collaborative dynamics among rival cinema operators. "We are fairly open in terms of trading best practices," he said, stressing a unified industry message: "Cinemas are a great place to have a good time."
Cost pressures and political pleas
Like much of the entertainment sector, Vue faces squeezed margins from rising operational costs-including higher minimum wages and employer National Insurance contributions. Richards said the company has absorbed these expenses to avoid passing them to customers, accepting "a small hit" to maintain ticket affordability. He criticized recent government policies as counterproductive, urging policymakers ahead of the upcoming Budget: "Please don't touch [us] again."
While unconcerned about streaming competition, Richards acknowledged rival leisure activities, such as theme parks or live sports, could divert audiences. However, he observed that younger generations remain highly social, a trend reflected in Vue's attendance figures for group-oriented films.
From Warner Bros. to Vue: A cinema veteran's perspective
Richards' industry roots trace back to his tenure as a senior executive at Warner Brothers, where he oversaw the studio's cinema chain, Warner Village. In 2003, his then-fledgling company, Spean Bridge Cinemas, acquired Warner Village's 36 locations, rebranding as Vue. Recalling the acquisition, he laughed: "The headline in The Times was, 'Unknown Bit Player Buys Warner Brothers.'"
Asked to name a favorite film, Richards demurred but pointed to One Battle After Another as an example of original storytelling that gives him "hope for the future." "I see a lot-a lot-of movies every week," he said, praising the film's creativity and execution.
